It's easy Prism!
The file will have a placement stitch that stitches first. Lay down fabric that you have cut with die. You can add fusible to back and iron in place if you like. Then stitch out EMB design.
I did the Umbrellas and then went back and added the EMB designs. It was quite the task to line up the Applique Umbrella with the EMB design but I managed it! Used 5 thumb tacks method and the cross hair points to get them exact. Recommend to do the stitch placement and THEN place applique fabric.
Just a tip but you don't even need the special die. Do the stitch file and then place fabric over it. Trim around fabric and stitch out rest of design.
Did you see the designs that use the owl die to makes different animals? Cute!
They are fun!